Managing Business Finances with Melissa Houston | Ep. 85

• Melissa explains that profit is essential for business survival, but many owners focus on revenue instead.

If you're making a million dollars in your launch, that's fantastic. But you really need to look at what's going on in your expenses.

• Tiffany shares how hiring a bookkeeper revealed her business was barely profitable despite high revenue.

• Business owners should hire a bookkeeper early to identify money leaks. Even if you're good at bookkeeping, recognize when you need a second set of eyes.

The longer it takes for you to look within your business and see what's going on, the more money you're losing.

• Three reasons businesses need cash reserves:

• Stability during economic downturns

• Covering unexpected expenses

• Getting through seasonal slow periods

Having a cash reserve is like having an emergency fund.

• Apply for a line of credit when business is thriving, not when you need it. Approval chances are much higher during good times.

What's going on in your bank account is not profit.

• Business owners should create a financial plan (not a budget) to track actual profit and expenses.

• When scaling, create 12-month projections that account for growing expenses alongside revenue. Maintain consistent profit margins.

If you're making $10 million but your profit margin dropped from 20% to 5%, that's a red flag.

• Review actual results 10-14 days after each month ends to catch issues early.

Our mistakes do not define us.

• Recognize money mindset issues, forgive yourself, and seek professional help when needed. Value your services and charge appropriately.